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Quote on Morning market 29 Septembar  2022 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

"When negative sentiments become dominant, the risk-off gathers momentum and markets get oversold. Then, usually,  an unexpected trigger reverses the near-term outlook leading to short covering and a market rally. This was precisely what happened yesterday in global markets when the Bank of England surprised markets with Quantitative Easing. This desperate act by BoE is more a reflection of the economic woes of the UK. But the market’s interpretation of the BoE’s surprise decision is that the Fed might pause its rate hike to avert a sharp economic downturn. The relief rally is likely to soon run out of steam and, therefore, investors need not make aggressive buys now. The MPC is likely to raise rates by 50bps and may move to a neutral stance. But this is already discounted by the market and therefore will not have any market moving impact."

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